Roadmap for application of IFRS converged standards in India officially notified

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20 Feb 2015

The Indian Ministry of Corporate Affairs (MCA) has officially notified the road map for the adoption of Indian Accounting Standards (Ind AS), which are largely converged with International Financial Reporting Standards (IFRSs).

The notification has been uploaded to the MCA website together with the thirty nine Ind AS. They will enter into force on 1 April 2015. Companies with a net worth of Rs. 500 crore or more will have to mandatorily follow Ind AS from 1 April 2016. Corporates having a net worth of less than Rs. 500 crore but are listed, or in the process of getting listed, and companies with a net worth of Rs. 250 crore or more will have to follow the new norms from 1 April 2017. However, the road map exempts banking, insurance and non-banking finance companies.

Ind AS are largely converged with IFRSs but not identical. In a recent speech, IASB Chairman Hans Hoogervorst called the new Ind AS "a very important stepping-stone on the path to adoption of IFRS" but also warned that stopping at convergence without in the end fully adopting IFRS might mean that India will not reap the full benefits of "impressive achievements".

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